Adverse selection in insurance requires that
a. all people face the same risk
b. potential customers facing more risk are no more interested in purchasing insurance
c. people are risk averse
d. insurers can tell higher risk people from lower risk people
c
You might also like to view...
Controls on GHG emissions from mobile sources
a. have been in place in the United States since the Clean Air Act of 1970 b. were recently established by the EPA and the National Highway Traffic Safety Administration (NHTSA) c. are implemented solely through CAFÉ standards issued by the EPA d. apply solely to heavy-duty trucks and rail transport vehicles
Which of the following is not a characteristic of a competitive price-searcher market?
a. Each firm produces a differentiated product. b. The entry barriers are high. c. Each firm faces a downward-sloping demand curve. d. The number of firms in the market is large.
Considering the spectrum of market structures and moving from pure competition to pure monopoly we can say that
A) entry barriers get lower but exit gets more difficult. B) entry becomes harder but exit becomes easier. C) entry gets harder and the number of firms dwindles. D) none of the above.
The federal government began issuing inflation-indexed Treasury bonds in
A. 1913. B. 1989. C. 1997. D. 2001.